Builder sentiment was unchanged at 32 in September; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
Regarding the three components of the homebuilder index, sales expectations rose two points to 45; current sales conditions was unchanged at 35; and buyer traffic fell one point to 21.
Thirty-nine percent of builders reported cutting prices in September compared with 37% in August, 38% in July and 37% in June. The average price discount remained at 5% for the month. Sixty-five percent of builders were using sales incentives other than price cuts to improve sales in September, which is down from 66% in August.
“Housing affordability is hurting buyer traffic for builders, and as a result, builders have slowed single-family home construction," said NAHB Chairman Buddy Hughes. "Nonetheless, our latest survey shows builders reported an increase for future market expectations as mortgage rates have posted a modest decline in recent weeks."
